OFFICE OF THE CITY ADMINISTRATIVE OFFICER

Size: px

Start display at page:

Download "OFFICE OF THE CITY ADMINISTRATIVE OFFICER"

Britton Allen
6 years ago
Views:

REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: August 07, 2014 CAO File No. 0220-04736-0006 Council File No. Council District: ALL To: The Mayor The Council From: Miguel A.

cilities Committee Reference: Asset Management Strategic Planning (C. F.

1 REPORT FROM OFFICE OF THE CITY ADMINISTRATIVE OFFICER Date: August 07, 2014 CAO File No Council File No. Council District: ALL To: The Mayor The Council From: Miguel A. Santana, City Administrative Office Chair, Municipal Facilities Committee Reference: Asset Management Strategic Planning (C. F. # ) Subject: ESTABLISH LIST OF PREQUALIFIED CONSULTANTS FOR STRATEGIC PLANNING FOR ASSET MANAGEMENT AND ECONOMIC DEVELOPMENT SUMMARY At its meeting of July 31, 2014, the Municipal Facilities Committee approved a report from my Office's Asset Management Strategic Planning Unit recommending the approval of a list of prequalified consultants, identified through a competitive Request for Qualifications, to provide services for the City's efforts related to strategic planning for asset management and economic development (Attachment A List of Prequalified Consultants). This action is now transmitted for Mayor and Council consideration. In December 2012, the Council, with concurrence from the Mayor, established the Asset Management Strategic Planning Unit (AMSP) in the Office of the City Administrative Officer (CAO) to provide the framework and perform preliminary analysis on various asset management strategic planning needs in the City, including the identification of areas of opportunity where the City can leverage its real estate assets for economic development. As AMSP is currently engaged in these efforts and working with departments to build the City's capacity for implementing economic development projects, we anticipate the need for short-term professional services and third-party technical review of proposed real estate and economic development projects. Accordingly, AMSP released a Request for Qualifications (RFQ) in February 2014 to develop a list of pre-qualified consultants in five service areas related to strategic planning for asset management and economic development, including: 1. Real Estate Services and Brokerage 2. Project Feasibility and Underwriting 3. Economic Development Analysis 4. Community Outreach 5. Master Planiiing and Site Planning A detailed list of the service,included within each of the five service areas is provided in Attachment B RFQ Service Areas.

CAO File No. PAGE 0220-04736-0006 2 An evaluation team composed of City real-estate professionals reviewed and scored all RFQ responses.

On an as-needed basis, AMSP and other City departments engaged in asset management and economic development will be able to request competitive bids from the prequalified list to perform a specific

2 CAO File No. PAGE An evaluation team composed of City real-estate professionals reviewed and scored all RFQ responses. This report recommends that the firms deemed qualified by the evaluation panel be included on a list of prequalified consultants for a three-year term, with two one-year options to extend. On an as-needed basis, AMSP and other City departments engaged in asset management and economic development will be able to request competitive bids from the prequalified list to perform a specific scope of work. Bids selected by the City as the most responsive and cost-effective will result in consultant contracts to provide services. Authority and funding to contract with consultants to support AMSP efforts was approved in the Budget and continued to the current budget. Other City departments may also contract with the prequalified firms with their own funds. Total compensation for all contracted services from prequalified firms is capped at $5 million over the proposed term for the pre-qualified list. RECOMMENDATIONS That the Council, subject to the approval of the Mayor: 1. Approve the prequalified list of contractors identified though the Request for Qualifications (RFQ) (Attachment A List of Prequalified Consultants) for three years plus two one-year extensions, in the categories enumerated in the RFQ (Attachment B RFQ Service Areas); 2. Authorize the City Administrative Officer, or designee, to solicit bids from and execute contracts with prequalified firms on an as-needed basis, subject to compliance with the City's contracting policies, approval of the City Attorney as to form, and funding availability; and 3. Authorize the General Managers for departments working in economic development, or designees, to solicit bids from and execute contracts with prequalified firms on an as-needed basis, subject to compliance with the City's contracting policies, approval of the City Attorney as to form, and funding availability. FISCAL IMPACT STATEMENT The recommendations have no further impact on the General Fund, as $579,000 is currently available for these services. In addition, the prequalified list contracts will contain a Financial Liability Clause which limits the City's financial obligation to the amount approved by the Mayor and Council in the corresponding year's budget for such work, which is consistent with the City's Financial Policies. As such, the recommendations in this report comply with the City's Financial Policies as project funding will support project expenditures.

CAO File No. PAGE 0220-04736-0006 3 BACKGROUND Request for Qualifications The RFQ was issued on February 10, 2014.

firms that included Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs), and all Other Business Enterprises (OBEs).

3 CAO File No. PAGE BACKGROUND Request for Qualifications The RFQ was issued on February 10, The RFQ was advertised to over 5,000 vendors through the City's Business Assistance Virtual Network (BAVN: ID 19153), and notice was also sent to nearly 100 real estate, planning, and redevelopment firms that included Minority Business Enterprises (MBEs), Women Business Enterprises (WBEs), and all Other Business Enterprises (OBEs). A presubmittal conference was held on March 10, 2014, with 56 attendees. Firms also had the opportunity to submit questions about the scope of work and the City's contracting compliance requirements via . Answers to all submitted questions from the presubmittal conference and from subsequent s were posted on March 19, 2014 for review by all proposing firms. The RFQ deadline was April 10, 2014, by which time AMSP received a total of 37 responses. Evaluation of Responses An evaluation panel comprised of representatives from the CAO, Economic and Workforce Development Department, Harbor Department, and the Housing and Community Investment Department individually reviewed and scored each of the Statements of Qualification (SOQs) for the first three service areas (Real Estate Brokerage, Project Feasibility, and Economic Development). A second evaluation panel, composed of the CAO, Planning Department, and Public Works Bureau of Engineering, separately reviewed the SOQs for the last two service areas (Community Engagement and Master/Site Planning). The evaluation panels then each convened to discuss the responses and collate scores. Respondents with an average score of 70 or above were deemed qualified. Below is a summary of the number of proposals received as well as the evaluation results. Service Area Total Proposals Received Total Qualified 1. Real Estate Services and Brokerage Project Feasibility and Underwriting Economic Development Analysis Community Outreach and Engagement Master Planning and Site Planning 12 7 The recommended list of prequalified firms was posted on BAVN and distributed to all responding firms on July 18, Upon request, AMSP staff was available to provide feedback to firms with questions about the evaluation and scoring of the SOQs. To date, two firms have requested debriefing sessions. Of the 32 firms selected as prequalified for one or more service areas, four (4) are certified as MBEs, three (3) are certified as WBEs, four (4) are certified as Disadvantaged Business Enterprises (DBEs), four (4) are certified as Local Business Enterprises (LBEs), and three (3) are certified as Small Local Business Enterprises (SLBs).

potentially provide some of the services proposed for contracting.

4 CAO File No. PAGE Charter Section 1022 Determination In accordance with Charter Section 1022, the Personnel Department determined that there are civil service classifications that could potentially provide some of the services proposed for contracting. After notifying all City departments of the intent to contract, the CAO determined that the work can be performed more feasibly by contractors than by City employees because contractors can provide technical expertise that is not sufficiently available in the City's workforce, and can perform third-party analysis of proposed economic development programs and real estate transactions, and because departments reported that there was insufficient capacity to perform the proposed services. For services that may be feasibly provided by the Department of General Services, including title report search, brokerage, and appraisal services requesting departments will consult with GSD regarding availability of staff before requesting bids from the Prequalified List. Bidding and Contracting This Office requests that City Council approve the qualified list (Attachment A List of Prequalified Consultants) with prequalified consultants in the five (5) service areas. The prequalified list will be effective for a three-year initial term, with two one-year optional extensions with Council approval. Bids from firms on the prequalified list will be requested for specific assignment scopes on an as-needed basis. For each scope of work, bids will be requested from at least five (5) of the pre-qualified firms. The winning bidder, selected by the City as being the most responsive and cost-effective, would be awarded a contract for each specified assignment. All firms selected for the prequalified list are expected to comply with the City's insurance requirements, and also to comply with applicable City Policies. In the future, this Office may wish to release a subsequent RFQ to augment the list of prequalified firms or expand the scope of services. Any such proposed additions to the list of prequalified firms would be submitted for Council approval. by: osh Rohmer, Principal Project Coordinator APPROVED: Assistant City Administrative Officer MA S:JR:

Attachment A LIST OF PREQUALIFIED CONSULTANTS After evaluation and scoring by panels of City real estate and economic development professionals of Statements of Qualification submitted in response to

Service Area 1: Real Estate Services and Brokerage BAE Urban Economics CBRE Cresa Los Angeles Cushman & Wakefield Economic & Planning Systems, Inc. HR&A Advisors Jones Lang LaSalle Americas, Inc.

5 Attachment A LIST OF PREQUALIFIED CONSULTANTS After evaluation and scoring by panels of City real estate and economic development professionals of Statements of Qualification submitted in response to the REQ, the following firms were deemed prequalified. Service Area 1: Real Estate Services and Brokerage BAE Urban Economics CBRE Cresa Los Angeles Cushman & Wakefield Economic & Planning Systems, Inc. HR&A Advisors Jones Lang LaSalle Americas, Inc. Kosmont Companies Overland, Pacific & Cutler Tierra West Advisors Service Area 2: Project Feasibility and Underwriting BAE Urban Economics CBRE CED Capital Strategies Cushman & Wakefield David Paul Rosen & Associates Economic & Planning Systems, Inc. Estolano LeSar Perez Advisors, LLC. HR&A Advisors Jones Lang LaSalle Americas, Inc. Keyser Marston Associates Kosmont Companies RCLCO (Robert Charles Lesser & Co.) RSG (Rosenow Spevacek Group, Inc.) The Concord Group The Natelson Dale Group, Inc. The Sotelo Group Tierra West Advisors Service Area 3: Economic Development Analysis BAE Urban Economics Economic & Planning Systems, Inc. Economic Development Results, LLC. Estolano LeSar Perez Advisors, LLC. HR&A Advisors Jones Lang LaSalle Americas, Inc. Keyser Marston Associates Kosmont Companies Los Angeles County Economic Development Corp. Development Corp. Placeworks Rodino Associates RSG (Rosenow Spevacek Group, Inc.) Stanley R. Hoffman Associates The Natelson Dale Group, Inc. Tierra West Advisors Service Area 4: Community Outreach and Engagement Community Change Partners Economic Development Results, LLC. Estolano LeSar Perez Advisors, LLC. Gensler Placeworks Urban Design Center Service Area 5: Master Planning and Site Planning Gensler Gruen Associates Moore Ruble Yudell Architects & Planners Placeworks Suisman Urban Design SWA Group, Inc. Page 1 of 1

Attachment B RFQ SERVICE AREAS The RFQ was developed to prequalify firms in each of the following service areas: 1) Real Estate Services and Brokerage, 2) Project Feasibility and Underwriting, 3)

Real Estate Services and Brokerage Preparation of Real Property Appraisals and Broker Opinions of Value Brokerage and marketing for City-controlled properties (including leases) Title Report search

6 Attachment B RFQ SERVICE AREAS The RFQ was developed to prequalify firms in each of the following service areas: 1) Real Estate Services and Brokerage, 2) Project Feasibility and Underwriting, 3) Economic Development, 4) Community Outreach, and 5) Master Planning and Site Planning, as described in more detail below. 1. Real Estate Services and Brokerage Preparation of Real Property Appraisals and Broker Opinions of Value Brokerage and marketing for City-controlled properties (including leases) Title Report search Market and feasibility analysis, market research Commercial and Industrial surplus/leakage analysis Advise on marketing strategies to solicit tenants and lease structuring for City-owned properties Space planning and demising recommendations for City properties Provide financial advice regarding structuring of City leases Preparation of Requests for Proposal, Requests for Qualifications, or other solicitations for development proposals 2. Project Feasibility and Underwriting Pro forma analysis and underwriting for real estate development including: commercial, industrial, multi-family and affordable housing, municipal facilities, and mixed-use Public/private deal structuring, including alternative financing options, and assessment of equity participation Analysis for public/private partnerships, potentially to include developments on groundleased City property, lease-leaseback transactions, and alternative ownership positions Cash flow projection and analysis, including preparation of discounted cash flow analysis for development projects Site- and/or development-specific revenue analysis and projections including, but not limited to, property, business, sales, utility, possessory interest, and transient occupancy taxes Financial feasibility analysis Land and project valuations Fiscal impact analysis Residual land value analysis Fair reuse value analysis Evaluation of proposed TFAR transactions and associated community benefits agreements Ground lease structuring Assistance in developer negotiations Page 1 of 2

for economic development Development of business incubation strategies and programs Business district strategies and programs for business retention, expansion, and attraction 4.

7 Attachment B 3. Economic Development Analysis Economic development analysis and strategies for commercial and industrial land use Strategies for community revitalization GIS mapping services Sector-based strategies for economic development Development of business incubation strategies and programs Business district strategies and programs for business retention, expansion, and attraction 4. Community Outreach and Engagement Organize and conduct community outreach meetings Prepare and distribute outreach materials Prepare and administer outreach and/or survey instruments 5. Master Planning and Site Planning Master planning for City-owned properties Site planning and development feasibility Structural analysis of existing City buildings, with respect to capacity for re-use or rehabilitation Parking analysis regarding demand, supply, and strategies for optimization Evaluation of environmental and hazardous materials in existing buildings, and preliminary budgeting for remediation Page 2 of 2

AVIATION AUTHORITY POLICY

AVIATION AUTHORITY POLICY PURPOSE: To establish a policy for the selection of development related professional services firms, including design-build firms for professional services and the Consulting Engineer, pursuant to the